Yun Hojung: "Nationwide Disaster Relief Fund Is Not Financed by Borrowing for Supplementary Budget"

Yun Ho-jung, the floor leader of the Democratic Party of Korea, is attending the party strategy meeting held at the National Assembly on the 1st and delivering opening remarks. Photo by Yun Dong-ju doso7@

[Asia Economy Reporter Jeon Jinyoung] Yoon Hojung, the floor leader of the Democratic Party of Korea, said on the 3rd regarding the party's ongoing efforts for the 2nd supplementary budget (supplementary budget), "Contrary to some claims, this supplementary budget is not being financed by borrowing, nor is it a budget prepared with the upcoming election in mind."

At the policy coordination meeting held at the National Assembly that day, Floor Leader Yoon said, "It is about returning the fiscal capacity generated from higher tax revenues collected in the first half of the year back to the people."

He added, "If the government simply holds onto the increased tax revenue, the fiscal policy would rather hinder economic recovery and become a stumbling block," and said, "Last year's nationwide disaster relief payments revitalized local economies and created a virtuous cycle that boosted domestic demand."

He continued, "The increase in tax revenue in the first half of this year can also be seen as a virtuous cycle effect of expansionary fiscal policy," and emphasized, "We will carefully review accumulated data such as the timing and scale of payments and make decisions centered on the field and the people."

Floor Leader Yoon added, "What we need to do this summer is to read the shadows of unknown people," and said, "The nationwide disaster relief payments and the introduction of the loss compensation system are part of reading the shadows of unknown people. This will serve as a primer to prevent polarization caused by COVID-19 and to support small business owners and self-employed individuals."